As the United States defense budget cuts, military UAV system procurement volume began to decline. In response to the unfavorable situation, United States drone manufacturers began actively seeking new opportunities, they are targeting specific UAV market, efforts to promote UAV exports, compete in delivering services, and prepare to meet the civilian market development.
As the Pentagon’s overall reduction in new production plans, in order to increase drone operations income, United States aerospace companies are increasingly seeking new UAV systems market.
United States in the field of UAS purchasing surge in nearly $ 750 million budget from fiscal year 2004 to fiscal year 2011 peak of 3.3 billion dollars, followed by purchases have been reduced. United States Department of Defense fiscal year 2014 budget applications, reduced budget amount to $ 1.3 billion, reflecting the United States reduced the number of overseas deployment of drones, and cut funding for unmanned aircraft systems.
In order to survive in a falling demand, some manufacturers have sights on the specific market for unmanned (such as low cost and high altitude long endurance unmanned cargo drone), they think that the market will become an emerging market. In terms of international sales, manufacturers are paying more attention to keep production lines running, and even sell the Pentagon had yet to purchase the product. Prime contractors and smaller companies are providing services (including maintenance and training, and so on) to compete. Along with the Federal Aviation Administration (FAA) on open skies of commercial UAV system date is approaching, the vendors on the civilian market (such as law enforcement drones and agro-unmanned aerial vehicles, and so on) is a growing interest.
Large companies under pressure
Companies are under pressure. At present, American troops still cut versions of “Global Hawk” (Global Hawk) unmanned aerial vehicle purchases, while “Global Hawk” unmanned aerial vehicle is the Northrop Grumman Corporation (Northrop Grumman) of major projects. United States air force in fiscal year 2014 budget, reiterated that to cancel the Block type 30 RQ-4 “Global Hawk” unmanned aerial vehicle purchases. Due to problems in design and maritime sensor software, MQ-4 “Poseidon” (Triton) drones (“Global Hawk” unmanned naval) production has been postponed from 2014 to 2015 for the first time. This led to “Poseidon” UAV production cuts of $ 425 million, while research and development funding increased by $ 200 million.
Proposed defence budget for 2014 will be MQ-8 “fire Scout” (Fire Scout) UAV (Northrop) purchase volume was reduced from 6 to 1, while the Navy is “fire Scout” drone transition from b-to-c.
US company General Atomics Aeronautical systems (General Atomics Aeronautical Systems) production of “death” (Reaper) UAV purchases also fell sharply, from 48 in 2012 fell to the Department of Defense fiscal year 2014 budget filed in the 12.
In 2014 fiscal year budget request, the army canceled the RQ-7 “Raven” (Raven) unmanned aerial vehicle purchase, the aviation environment company (AeroVironment) dealt a new blow.
Each manufacturer’s revenue has fallen. Although unmanned systems revenue data released also few, but those already published data of the company’s unmanned systems revenues have dropped significantly. Textron Corporation (Textron) under the AAI company reported its unmanned systems sales fell 10% in 2011, 2012 fell 1%. Aviation environment unmanned systems revenue fell from $ 274 million in fiscal 2012 to 2013 fiscal year of $ 194 million, down 30%; the company’s gross profit fell from $ 116 million in fiscal 2012 to 2013 fiscal year of $ 79 million, down 32%.
Niche growth market
United States contractor is investing in particular growing niche markets, such as high altitude long endurance UAV (HALE). Given the current high altitude long endurance unmanned aircraft system purchases are high, contractors have seen into the high altitude long endurance UAV system the potential profits of the largest UAV market. Teal Group (Teal Group) predicts that from 2013 to 2022 this decade, high altitude long endurance UAV system will take up the entire 20% of the UAV market.
The Boeing Company (Boeing) on the use of the company’s hydrogen-powered “phantom eyes” (Phantom Eye) unmanned aerial vehicles into the high altitude long endurance unmanned aerial systems market of particular interest. High altitude long endurance UAV-time longer, which means that customers need fewer aircraft. The drones from the target on a round trip will cost less, less carrying more fuel. Boeing has the potential for profit has made significant investments in the market. In June 2013, Boeing received the Missile Defense Agency (Missile Defense Agency) of a contract worth up to $ 6.8 million, the Missile Defense Agency became “phantom eyes” drone’s first load of customers. In accordance with the contract, Boeing will be integrated into an unspecified load “phantom eyes” test drone.
Aviation environment companies also are interested in hydrogen-powered system. However, the company’s “global Watcher” (Global Observer) verify that the crash happened in April 2011, the accident delayed “global observer” UAV development.
Lockheed Corporation (Lockheed) is very active in the cargo drone system developed K-MAX unmanned helicopters and other advanced systems.
The lure of foreign markets
As the United States reduce the procurement of UAVs, contractors will be more and more eyes to look abroad for potential markets. United States contractors overseas UAV systems are usually less than 10%, but in the next few years, that number is expected to grow significantly. United States companies interest in overseas markets will improve, because the foreign military is planning to follow the United States, no one’s going to equip their army. Unmanned systems do they see in the Iraq and Afghanistan war played an important role.
View of Germany cancel their “European Falcon” (Euro Hawk) project, Northrop Grumman is promoting “Global Hawk” unmanned aerial vehicle is likely to sell. Northrop Grumman has sold 4 Block 40 aircraft to NATO’s “Global Hawk” unmanned. Japan plans to buy 4 “Global Hawk” unmanned aircraft, and you have the funds needed to buy aircraft into 5-year plan. Korea has already purchased the “Global Hawk” unmanned aerial vehicles to the United States sought the views of the Government, is waiting for the United States the specific response. Australia and Norway have expressed their Navy version of “Global Hawk” unmanned aerial vehicles (“Poseidon” drones) are interested in.
General Atomics Aeronautical systems are vigorously promoting unmanned aerial vehicle exports, and has harvested several large orders. In June 2013, France the Ministry of Defence announced from the United States to buy 12 “death” drone (value us $ 874 million) plan. Because the French army interoperability with the US and other European forces, France purchased “death” drones can in many operations in Germany and the Netherlands, and Poland and other European countries, “predator” (Predator) unmanned aerial vehicles play a strengthened role.
General Atomics Aeronautical systems, another major progress in February 2013 sold worth $ 197 million to the United Arab Emirates “predator” XP drone (this is the “predator” a drone of export-oriented). “Predator” XP after a refit, mount point cannot be installed, so they cannot be weaponized. United Arab Emirates accepts the drones may ease Saudi Arabia United States concerns of other allies in the Middle East, which the United States offered to buy weapons “death” drones, and ate the United States Government demands.
RQ-7 “shadow” drone manufacturer AAI companies seeking overseas sales of new versions of the “shadow” drone. M2 “shadow” drones were developed by AAI Corporation used the company’s research and development funding, the longer wing, fuselage redesigned, and can carry two separate loading, and not, as in previous versions, only one electro-optical infrared turret. AAI Corporation has provided Saudi Arabia demonstrated the system, the company will Saudi Arabia considered the first potential customers.
Provide services
An important aspect of service has become the focus of the company, this is because the market potential is large, but compared with the new system, service market is more stable. Unmanned systems customer base growing means that people will invest more money in support of the operation of these systems. Support product is several times larger than the production of income obtained, so the company could see services for unmanned systems (everything from maintenance to the training service) broad prospects.
In November 2012, battlefield flight service company (Battlespace Flight Services) won a contract worth as much as $ 950 million and by March 2014, for the United States deployed in the world’s “death” drones and MQ-1 “predator” unmanned aerial vehicles to provide maintenance support. Flight services company involved in the bidding and battlefield is the AAI Corporation, AAI also unmanned aerial vehicle service market in seeking a bigger share.
Training is another service area. Headquartered in Montreal, CAE is the world’s largest aerospace simulation and training companies. To illustrate the importance of the unmanned aircraft systems training market, the company’s officials said train market value is about $ 475 million, and each year will grow more than 4%. American forces will rely more and more on training, on the one hand in order to save money, and partly because as the UAV system was shipped back to the United States, practical training will be an increasing number of airspace restrictions.
Training prompted Northrop Grumman and Israel Aerospace industries (Israel Aerospace Industries,IAI) interest in traditional aerospace equipment, such as main contractor, these companies are to provide support to the company’s systems and aftermarket wanted to penetrate into the competition.
Training services also cause those in other types of training flight for the dominant companies of interest, these companies are looking to expand their scope of business. CAE companies have been trying to penetrate into the unmanned aircraft systems training and simulation market. The company has been providing the market with our own developed with open architecture for unmanned missions.
August 2013, CAE won a United States air force of a contract, to provide a full range of “predator” drones, and “death” unmanned aerial vehicle crew training services. If all the options this contract worth up to $ 20 million will be executed, then the value of this contract within five years will be increased to $ 100 million. CAE will provide lectures, simulation training and flight instruction, will also develop the courseware.
Northrop Grumman to provide the market with low cost “sand shark” (Sandshark) system, the system can simulate a variety of unmanned aircraft systems, such as the “predator” drones, “” death “drones and” Hunter “(Hunter) drone. “Sand shark” system, operator practice drone takeoffs and landings will cost just a fraction of the other system.
Israel Embraer developed its own unmanned aircraft systems task training device, which is an advanced Simulator, you can change settings to simulate a variety of unmanned aerial vehicles and loads. The company has assured Israel air force and undisclosed foreign customers to sell such a system and is committed to the establishment of training institutions in foreign countries, aims to provide systematic training of the company while providing systematic training for other companies.
Other prospects
As companies for their systems to expand the market and service trade has become a thriving industry. More than 10 years ago, Israel contractor (including the Israel Aerospace industries, Elbit Systems and Aeronautics Company) first by signing a service contract to the Israel Defence Forces (Israel Defense Forces) provides aircraft. In the United States, the Boeing Company’s English-Spanish (Insitu) companies to take the lead of such practices, and from the United States special operations command to obtain the contracts. At present, at least 15 of the world’s leading contractors in the business of selling services, there are few other small company that specializes in selling services.
Now, most of the unmanned aircraft systems manufacturers in the world (especially those manufacturers who produce small tactical unmanned aircraft systems) are willing to charge a service fee to the customers with their system. As the United Kingdom and the Netherlands, and Germany and Poland military in Afghanistan during the deployment through the purchase of services to meet the needs of his spying, buying service concept spread quickly. In July 2013, a landmark agreement between the United Nations and Finmeccanica (Finmeccanica) owned by Selex ES signed a contract for the United Nations peacekeeping mission in the Democratic Republic of the Congo by the company provide unmanned support. This is the first time the United Nations in providing such support on signing contracts with private operators. This is a 3-year contract, likely will be extended for 2 years. Don t wait for Chinese translation Peter Thiel
For manufacturers, in addition to increased demand for its existing products in addition to selling services also benefit. With the development of UAVs in the world commercial market, accumulated experience in selling services is very important. Many potential customers (such as farmers and natural resource companies) does not intend to have its own drones, but purchasing UAV services. In such cases, the contractor will provide image data that customers need to them rather than sell them unmanned aircraft systems.
Smaller systems are preparing to meet the non-military market growth. The past two years, have 4 companies (Israel aircraft industry company, a Boeing subsidiary English-Spanish company, aviation environmental company and Lockheed Martin Corporation Procerus technologies company) issued to law enforcement agencies to target customers of small UAVs. These companies expect law enforcement will be the first extensive use of unmanned aircraft systems customers. In the United States, fierce debate over privacy of the law enforcement sector to expand the use of unmanned aircraft in the near future become less optimistic about the prospects. United States local, State and national Government is considering legislation to ban or severely restrict law enforcement use of drones. Some local law enforcement agencies have abandoned plans to use drones, other local law enforcement agencies are taking my arguments further development.
Precision agriculture provides market for drones to provide market much more than law enforcement, but the manufacturer has said little about a market strategy. They seemed to be waiting on the sidelines until the FAA looks almost announced the civilian drone of open skies schedule and relevant provisions of the Act only when.
Although unmanned aerial vehicle manufacturers on the market may take a different approach, but one thing is the same, that is, they are determined to seek new profit growth point.
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